Finkelstein Thompson LLP Announces Class Action Lawsuit Against Ambac Financial Group, Inc.
08 Février 2008 - 5:41PM
Business Wire
Notice is hereby given that Finkelstein Thompson LLP has filed a
class action lawsuit in the United States District Court for the
Southern District of New York on behalf of purchasers of Ambac
Financial Group, Inc. (�Ambac�) (NYSE:ABK) common stock during the
period between October 19, 2005 and November 26, 2007 (the �Class
Period�). The complaint charges Ambac and certain of its officers
and directors with violations of the Securities Exchange Act of
1934. Ambac is a holding company whose subsidiaries provide
financial guarantee products and other financial services to
clients in both the public and private sectors around the world.
The complaint alleges that during the Class Period, defendants
issued materially false and misleading statements regarding the
Company�s business and financial results related to its financial
exposure on collateralized debt obligations (�CDO�) contracts.
Specifically, the complaint alleges that defendants misrepresented
and concealed the material facts that: (i) the Company lacked
requisite internal controls to ensure that the Company�s
underwriting standards and its internal rating system for its CDO
contracts were adequate, and, as a result, the Company�s
projections and reported results issued during the Class Period
were based upon defective assumptions and/or manipulated facts;
(ii) the Company�s financial statements were materially misstated
due to its failure to properly account for its mark-to-market
losses; (iii) given the deterioration and the increased volatility
in the mortgage market, the Company would be forced to tighten its
underwriting standards related to its asset-backed securities,
which would have a direct material negative impact on its premium
production going forward; (iv) the Company had far greater exposure
to anticipated losses and defaults related to its CDO contracts
containing subprime loans, including even highly rated CDOs, than
it had previously disclosed; (v) the Company had far greater
exposure to a potential ratings downgrade from one of the credit
ratings agencies than it had previously disclosed; and (vi)
defendants� Class Period statements about the Company�s selective
underwriting practices during the 2005 through 2007 timeframe
related to its CDOs backed by subprime assets were patently false;
as the Company�s underwriting standards were at best aggressive and
at a minimum were completely inadequate. As the truth began to be
disclosed, shares of Ambac common stock plummeted, causing
substantial losses to investors. Plaintiff seeks to recover damages
on behalf of all purchasers of Ambac common stock during the Class
Period (the �Class�) and is represented by Finkelstein Thompson
LLP. Finkelstein Thompson LLP has spent over three decades
delivering outstanding representation to institutional and
individual clients in connection with securities and other
finance-related litigation, and has been appointed as lead or
co-lead counsel in dozens of shareholder class actions. Indeed, in
the past decade, the firm has served leadership roles in cases that
have recovered over $1 billion for investors and consumers. If you
wish to serve as lead plaintiff, you must move the Court no later
than March 17, 2008. A lead plaintiff is a class member that acts
on behalf of other class members in directing the litigation.
Although your ability to share in any recovery is not affected by
the decision whether or not to seek appointment as a lead
plaintiff, lead plaintiffs make important decisions which could
affect the overall recovery for class members, including decisions
concerning settlement. The securities laws require the Court to
consider the class member(s) with the largest financial interest as
presumptively the most adequate lead plaintiff(s). If you wish to
discuss this action or have any questions concerning this notice or
your rights or interests, please contact plaintiff�s counsel,
Donald J. Enright or Elizabeth K. Tripodi at (877) 337-1050, or via
e-mail at contact@finkelsteinthompson.com. To learn more about this
case and Finkelstein Thompson LLP, please visit
www.finkelsteinthompson.com.
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